Why It Matters

The Managed Funds Association faces a fundamental challenge as the alternative investment industry’s explosive growth draws regulatory scrutiny that threatens its business model.

With hedge fund assets hitting record levels and private credit exploding to between $1.7 and $3 trillion, policymakers are increasingly focused on systemic risk and investor protection—concerns that directly threaten MFA’s core lobbying priorities.

The organization is simultaneously playing offense and defense: pushing to expand retirement plan access to alternatives and shape digital asset regulation, while defending against efforts to tax carried interest as ordinary income and implement stricter private credit oversight.

By the Numbers

The Managed Funds Association is a lobbying powerhouse with over two decades of Washington engagement. Since 2003, MFA has filed more than 700 lobbying disclosures, spending $84.4 million total. Its in-house operation alone accounts for 70 disclosures totaling $67.7 million since 2007.

For Q3 2025, MFA reported $1.18 million in in-house lobbying spending. The organization supplements in-house efforts with external firms like Federal Hall Policy Advisors LLC and Blue Ridge Law & Policy PC.

MFA’s six-person in-house team blends financial services expertise with congressional connections. Notable 2025 additions include John D. Van Etten, a JPMorgan Chase veteran and former Legislative Director for Rep. Nan Hayworth (R-NY-19), and Georgette Perros Sierra, former Chief of Staff to Rep. Carolyn McCarthy (D-NY-4). This bipartisan experience positions MFA to navigate a divided Congress.

The Agenda

MFA’s Q3 2025 agenda focuses on several key areas: financial institutions and securities regulation, including investment adviser rules, digital assets and cryptocurrency, nonbank regulation by the Financial Stability Oversight Council, and private credit oversight. The organization is actively defending the current tax treatment of carried interest against the Carried Interest Fairness Act, while addressing pass-through entity taxes and potential Tax Cuts and Jobs Act extensions.

MFA is also pushing for expanded retirement and ERISA access to alternative investments—a growth priority for the industry—and lobbying on agriculture and commodities matters, including Dodd-Frank implementation oversight.

Broader Context

The alternative investment industry is experiencing unprecedented growth, with hedge fund assets hitting a record $5 trillion in Q3 2025 and the broader private capital universe reaching $22 trillion. However, this expansion has drawn significant regulatory scrutiny. Senator Elizabeth Warren has called for stress testing of the private credit market, citing systemic risk concerns.

The regulatory environment presents mixed signals. The Trump administration’s August 2025 executive order directing federal agencies to expand alternative asset access in 401(k) plans aligns with MFA’s goals, while SEC and CFTC announced a harmonization initiative on digital assets.

However, Senators Warren and Sanders have opposed the retirement plan executive order, calling private equity and crypto investments "dangerous," while the Carried Interest Fairness Act continues to be reintroduced as a Democratic priority.

Between The Lines

Congress is actively legislating on issues central to MFA’s agenda. The Digital Asset Market Clarity Act (H.R. 3633), GENIUS Act (S. 919), and STABLE Act (H.R. 2392) are moving through committees to create federal crypto frameworks, with Senate Banking Chairman Tim Scott setting deadlines for market structure legislation.

The House Financial Services Committee held hearings on Dodd-Frank’s legacy, while the FIRM Act from Rep. Andy Barr signals Republican appetite for regulatory reform.

Competitive Landscape

The alternative investment industry’s lobbying extends beyond MFA. BlackRock is similarly engaged on investment adviser regulation and private credit regulation, while Andreessen Horowitz is a key player in digital assets lobbying. This coordinated industry effort amplifies the sector’s collective message but also concentrates opposition from progressive lawmakers who view the push as weakening financial regulation.

The Bottom Line

MFA spent $1.18 million on in-house lobbying in Q3 2025, deploying a seasoned six-person team with bipartisan congressional credentials. The organization is capitalizing on a favorable Republican regulatory environment while containing Democratic opposition to private capital expansion, particularly efforts to expand retirement plan access that face strong progressive pushback.

Success requires navigating a sharply divided Congress, where Republicans favor regulatory streamlining and market access while Democrats emphasize investor protection and financial stability.

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